IRS Clearing

This section highlights the responsibilities and the starting dates for the clearing obligations relevant to each category of counterparty.
Click on the 'Clearing' tab for an overview of the EMIR Clearing rules, including the list of in scope products.

In scope interest rate derivatives products

To discover which interest rate derivatives products are in scope of EMIR Clearing rules, please download ESMA's Public Register for the Clearing Obligation under EMIR.

Interest rates derivatives clearing calendar

G4 currencies

The Regulatory Technical Standards (RTS) for the EMIR clearing rules applying to certain interest rates derivative contracts denominated in G4 currencies (GBP, EUR, JPY and USD) were published in the Official Journal on 1 December 2015.

The rules entered into force on 21 December 2015, which determines the starting dates for the frontloading and clearing obligations relevant to each category of counterparty as stated in the table.

Additional currencies

The Regulatory Technical Standards (RTS) for the EMIR clearing rules applying to certain interest rate derivative contracts denominated in NOK, PLN and SEK were published in the Official Journal on 20 July 2016.

The rules entered into force on 9 August 2016, which determines starting dates for the frontloading and clearing obligations relevant to each category of counterparty as stated in the table.

When does the clearing obligation begin?

As detailed in the table below, the clearing obligation will start on different dates depending not only on when the relevant classes of OTC derivatives are declared subject to the clearing obligation, but also depending on the counterparty classification.

In any transaction between counterparties in different categories, the clearing obligation applies on the later date (e.g. a trade between Category 1 and Category 2 must be cleared within the deadline applicable to Category 2 counterparties).

Category Frontloading requirement start date Clearing obligation start date
Category 2 G4 currencies: 21 May 2016
Additional currencies: 9 October 2016
G4 currencies: 21 December 2016
Additional currencies: 9 August 2017
Category 3 Frontloading does not apply to Category 3 G4 currencies: 21 June 2017
Additional currencies: 9 February 2017
Category 4 Frontloading does not apply to Category 4 G4 currencies: 21 December 2018
Additional currencies: 9 August 2019


Requirements relevant to all FC and NFC+ clients

HSBC Bank plc requests all FC and NFC+ clients to confirm their clearing category by one of the two options detailed below.

Option 1: ISDA Amend

ISDA Amend is a joint service provided by Markit and the International Swaps and Derivatives Association, Inc. With ISDA Amend, swap dealers and clients can classify their trading entities as well as amend and share multiple ISDA master agreements using a single online tool. This helps to ensure clients are compliant with new requirements related to EMIR.

Please visit Markit's dedicated webpage to access and sign up to ISDA Amend.

If you have already completed ISDA Amend in relation to the Title VII of the Dodd Frank Act you will still be required to register for EMIR Clearing. Although there are similar obligations under Title VII of the Dodd Frank Act and EMIR Clearing, they are separate regulatory regimes requiring separate documentation.

Option 2: ISDA Categorization Letter

Please click here to download the ISDA Categorisation Letter and return it to the following email address:
regulatory.business.support.europe@hsbc.com. You can find ISDA guidance notes on the letter here.

Please note the following HSBC entities categories for the purpose of clearing in-scope interest rate derivatives under EMIR:

  • HSBC Bank plc (LEI: MP6I5ZYZBEU3UXPYFY54) is a category 1 counterparty.
  • HSBC Bank USA, National Association (LEI: 1IE8VN30JCEQV1H4R804) is a category 1 counterparty.
  • The Hongkong and Shanghai Banking Corporation Limited (LEI: 2HI3YI5320L3RW6NJ957) is a category 1 counterparty.
  • HSBC France S.A. (LEI: F0HUI1NY1AZMJMD8LP67) is a category 1 counterparty.
  • Trinkaus & Burkhardt AG (LEI: JUNT405OW8OY5GN4DX16) is a category 2 counterparty.

Requirements relevant to Category 1 counterparties

You are a category 1 counterparty when you are a clearing member of at least one central counterparty (CCP) which is authorised or recognised under EMIR to clear one or more classes of derivatives which are subject to the RTS, provided the clearing membership allows the counterparty to clear one or more of those classes of derivatives.

Disclose your EMIR Clearing Category.

Please disclose your EMIR clearing category as soon as you have determined this.

Important: Since 21 February 2016, HSBC Bank plc requires all in scope interest rate derivative trades with category 1 counterparties to be cleared.

Since EMIR Clearing rules permit voluntary clearing during the frontloading period, HSBC policy is to stop bilateral trading of products subject to the clearing obligation with Category 1 counterparties from the beginning of the frontloading period.

Requirements relevant to Category 2 counterparties

You are a category 2 counterparty when you are:

  • a Financial Counterparty not included in Category 1 and belonging to a group whose aggregate month-end average notional amount of uncleared derivatives is above EUR 8 billion for the 3-month period comprised between 1 January 2016 and 31 March 2016; or
  • an Alternative Investment Fund (AIF) that is an NFC+, not included in Category 1 and belonging to a group whose aggregate month-end average notional amount of uncleared derivatives is above EUR 8 billion for the 3-month period comprised between 1 January 2016 and 31 March 2016.

Category 2 counterparties (without direct clearing access)

The frontloading requirement

Frontloading is only applicable to trades executed by Category 1 and Category 2 financial counterparties. The frontloading requirement is the obligation to clear in-scope OTC derivative contracts executed or novated after a certain date but before the date of application of the clearing obligation. At the latest, when bilaterally executed during the frontloading period, such trades must be submitted for clearing on the relevant clearing obligation start date. HSBC will support bilateral execution of trades subject to the frontloading requirements provided clients execute an ISDA Additional Termination Event (ATE) agreement.

  1. Disclose your EMIR Clearing Category.
    Please disclose your EMIR clearing category as soon as you have determined this.


  2. Return your ISDA Additional Termination Event (ATE) agreement.
    Please execute and return your ATE shortly after the end of the EUR 8bn threshold calculation period (31 March 2016) or prior to this date when possible to the following email address: regulatory.business.support.europe@hsbc.com.

    Please include evidence of signing authority in your response.

    If you have not received this document from us, please contact us at regulatory.business.support.europe@hsbc.com.

    The ATE is required if your entity is a Financial Counterparty and does not have a clearing arrangement in place by the time the clearing obligation takes effect. Should this happen, any trades which are subject to the frontloading obligation (and therefore are required to be submitted for clearing) will have to be torn up, i.e. terminated shortly in advance of the date on which the clearing obligation takes effect. The ATE sets out the basis on which any such termination would be effected.

    In the absence of an executed ATE with HSBC, we may stop bilateral trading of interest rates derivatives products subject to the EMIR clearing obligation with your entity from 21 May 2016.
  3. Return your CDEA.
    Please execute and return your CDEA by PDF shortly after the end of the EUR 8bn threshold calculation period (31 March 2016) or prior to this date when possible to the following email address: regulatory.business.support.europe@hsbc.com.

    Please include evidence of naming signing authority in your response.

    If you have not received this document from us, please contact us at regulatory.business.support.europe@hsbc.com.

    The ISDA/FIA Europe Cleared Derivatives Execution Agreement ("CDEA") governs the process around the submission of over-the-counter derivative transactions for clearing and the options available to the parties in the event that a transaction fails to clear. Where the parties are unable to clear a transaction they can agree to accept it as a bilateral trade or terminate it.

    HSBC Bank plc requires all counterparties who intend to trade in scope interest rate derivative transactions to which the EMIR Clearing obligation applies, to enter into the CDEA agreement before their clearing obligation start date.

    In the absence of an executed CDEA with HSBC, we may stop trading interest rates derivatives products subject to the EMIR clearing obligation with your entity from 21 December 2016.

Category 2 counterparties with indirect clearing access

Since EMIR Clearing rules permit voluntary clearing during the frontloading period, HSBC policy is to stop bilateral trading of products subject to the clearing obligation with Category 2 counterparties with clearing access from the beginning of the frontloading period. From 21 May 2016, HSBC Bank plc will require all in scope interest rate derivative trades with category 2 counterparties with indirect clearing access to be cleared.
Please contact us before 21 May 2016 at regulatory.business.support.europe@hsbc.com, should you wish to continue bilateral trading of clearable trades until the starting date of the clearing obligation (21 December 2016).

  1. Disclose your EMIR Clearing Category.
    Please disclose your EMIR clearing category as soon as you have determined this.
  2. Execute and return your CDEA.
    Please execute and return your CDEA by PDF shortly after the end of the EUR 8bn threshold calculation period (31 March 2016) or prior to this date when possible to the following email address: regulatory.business.support.europe@hsbc.com.

    Please include evidence of signing authority in your response.

    If you have not received this document from us, please contact us at regulatory.business.support.europe@hsbc.com.

    HSBC Bank plc requires all counterparties who intend to trade in scope interest rate derivative transactions to which the EMIR Clearing obligation applies, to enter into the CDEA agreement before their clearing obligation start date.

    The ISDA/FIA Europe Cleared Derivatives Execution Agreement ("CDEA") governs the process around the submission of over-the-counter derivative transactions for clearing and the options available to the parties in the event that a transaction fails to clear. Where the parties are unable to clear a transaction they can agree to accept it as a bilateral trade or terminate it.

    In the absence of an executed CDEA with HSBC, we may stop trading interest rates derivatives products subject to the EMIR clearing obligation with your entity 21 May 2016.

Requirements relevant to Category 3 counterparties

You are a category 3 counterparty when you are:

  • a Financial Counterparty not included in Category 1 or 2; or
  • an Alternative Investment Fund (AIF) that is an NFC+, not included in Category 1 or 2.

Disclose your EMIR Clearing category

Please disclose your EMIR clearing category shortly after the end of the EUR 8bn threshold calculation period (31 March 2016) or prior to this date when possible.

HSBC will stop bilateral trading of interest rates derivatives products subject to the EMIR clearing obligation with your entity from 21 June 2017.

Requirements relevant to Category 4 counterparties

You are a category 4 counterparty when you are a Non-Financial Counterparty above the EMIR Clearing Threshold not included in Category 1, 2 or 3.

Disclose your EMIR Clearing category

Please disclose your EMIR clearing category as soon as you have determined this.

HSBC will stop bilateral trading of interest rates derivatives products subject to the EMIR clearing obligation with your entity from 21 December 2018.


Last updated: 27 September 2016